What’s the likelihood of winning this property at auction?

[Danielle McClelland]

My husband and I are going to the courthouse in another month to bid on a condo in a fast growing area. The judgment is $25,000. From what I see on all of the real estate search sites, the value is anywhere from $120K to $140K. Rents for this area and caliber of unit goes for $1100-$1200.

We’ve been to a couple of foreclosure auctions and in my experience it seems like the lender will always buy it back or the winning bid will be closer to the estimated value of the property.

Am I crazy to think that winning it at the judgment or close to it is an option? Does anyone have experience with winning an auction at the judgment price? Thank you.

[Jay Hinrichs]

Originally posted by @Greg H.:

Originally posted by @Jay Hinrichs:

Originally posted by @Thomas Jackson:

I have won multiple homes at the sheriff sales and have gotten them at very good prices. Typically the bank will only buy the house back for what is owed. Typically a bank representative will bid the exact amount owed on the loan and then even leave the courthouse and let others bid it higher. Sheriff sales are popular now so in my experience the margins are getting smaller and smaller as more people show up to auction to bid. Anything is possible when it comes to the auctions, but good luck!! 

bank is not allowed by law to bid past what they are owed. 

Is that true for South Carolina?  In Texas, the lender can bid up to whatever amount they want with any excess awarded to the borrower  

Greg my bad let me re state that..  bank can only publish an opening bid at their max amount owed.. if they wish to show up and further bid they certainly can.. but the opening bid cannot exceed their full credit bid amount.

IN practice for a bank or servicer to bid up past amount owed would be rare.. private lender HML who see big up side might do this.